On the sidelines of the IMF annual meeting in Washington, DC, Nobel-prize-winning economist, Robert Stiglitz, panned the idea of the U.S. pressuring China to let its currency rise.

This transcript has been automatically generated and may not be 100% accurate.

I ... changes in the exchange rate can actually increase ... in homelessness ... and the reason is ... that he is ... the ... demand elasticity is ... for Chinese goods are relatively well ... then when the exchange rate ... increases ... the quantity goes down less than the price goes up ... and U S spending actually goes up ... and so the net effect could be an increase ... in the trade imbalances ... so ... the the the notion that ... this is a panacea is clearly wrong ...